PRIOR PRINTER'S NO. 1292
PRINTER'S NO. 2910
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1098
Session of
2017
INTRODUCED BY PEIFER, DUNBAR, FARRY, GODSHALL, HELM, IRVIN,
LAWRENCE, MILLARD, PICKETT AND RYAN, APRIL 7, 2017
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JANUARY 23, 2018
AN ACT
Amending the act of December 31, 1965 (P.L.1257, No.511),
entitled "An act empowering cities of the second class,
cities of the second class A, cities of the third class,
boroughs, towns, townships of the first class, townships of
the second class, school districts of the second class,
school districts of the third class and school districts of
the fourth class including independent school districts, to
levy, assess, collect or to provide for the levying,
assessment and collection of certain taxes subject to maximum
limitations for general revenue purposes; authorizing the
establishment of bureaus and the appointment and compensation
of officers, agencies and employes to assess and collect such
taxes; providing for joint collection of certain taxes,
prescribing certain definitions and other provisions for
taxes levied and assessed upon earned income, providing for
annual audits and for collection of delinquent taxes, and
permitting and requiring penalties to be imposed and
enforced, including penalties for disclosure of confidential
information, providing an appeal from the ordinance or
resolution levying such taxes to the court of quarter
sessions and to the Supreme Court and Superior Court," in
local taxes, further providing for delegation of taxing
powers and restrictions thereon; and, in consolidated
collection of local income taxes, further providing for
declaration and payment of income taxes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 301.1(a) of the act of December 31, 1965
(P.L.1257, No.511), known as The Local Tax Enabling Act, is
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amended and the section is amended by adding a subsection to
read:
Section 301.1. Delegation of Taxing Powers and Restrictions
Thereon.--(a) [The] Except as provided under subsection (a.2),
the duly constituted authorities of the following political
subdivisions, cities of the second class, cities of the second
class A, cities of the third class, boroughs, towns, townships
of the first class, townships of the second class, school
districts of the second class, school districts of the third
class, and school districts of the fourth class, in all cases
including independent school districts may, in their discretion,
by ordinance or resolution, for general revenue purposes, levy,
assess and collect or provide for the levying, assessment and
collection of such taxes as they shall determine on persons,
transactions, occupations, privileges, subjects and personal
property within the limits of such political subdivisions, and
upon the transfer of real property, or of any interest in real
property, situate within the political subdivision levying and
assessing the tax, regardless of where the instruments making
the transfers are made, executed or delivered or where the
actual settlements on such transfer take place. The taxing
authority may provide that the transferee shall remain liable
for any unpaid realty transfer taxes imposed by virtue of this
chapter.
* * *
(a.2) A taxing authority is prohibited from levying,
assessing and collecting or providing for the levy, assessment
and collection of local income taxes on persons within its local
jurisdiction if the person meets the Federal and State income
tax exemption requirements and was not required to file a
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Federal or State income tax return in the preceding year.
Persons residing in a local taxing authority that meet Federal,
State and local income tax filing exemptions shall not be
required to file a local tax return indicating the person earned
zero income or does not owe any local tax to the local taxing
jurisdiction.
* * *
Section 2. Section 502(c)(2) of the act, amended November 4,
2016 (P.L.1154, No.150), is amended to read:
Section 502. Declaration and payment of income taxes.
* * *
(c) Declaration and payment.--Except as provided in
subsections (a)(2) and (d), taxpayers shall declare and pay
income taxes as follows:
* * *
(2) (i) Every taxpayer making net profits RESULTING IN
A TAX LIABILITY OF $200 OR MORE shall, by April 15 of the
current year, make and file with the resident tax officer
a declaration of the taxpayer's estimated net profits
during the period beginning January 1 and ending December
31 of the current year, and shall pay to the resident tax
officer in four equal quarterly installments the tax due
on the estimated net profits. The first installment shall
be paid at the time of filing the declaration, and the
other installments shall be paid on or before July 15 of
the current year, October 15 of the current year and
January 15 of the succeeding year, respectively. This
subparagraph shall not apply to net profits equal to or
less than $200. For declarations of taxes on estimated
net profits equal to or less than $200, FOR DECLARATIONS
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OF ESTIMATED TAXES ON NET PROFITS RESULTING IN A TAX
LIABILITY THAT IS LESS THAN $200, a taxpayer may remit
one lump sum payment to the taxing officer or taxing
authority without penalty and shall not be required to
file quarterly estimates that state zero taxes on
estimated net profits .
(ii) Any taxpayer who first anticipates any net
profit equal to or more than $200 RESULTING IN A TAX
LIABILITY OF $200 OR MORE after April 15 of the current
year shall make and file the declaration required on or
before July 15 of the current year, October 15 of the
current year or January 15 of the succeeding year,
whichever date next follows the date on which the
taxpayer first anticipates such net profit, and shall pay
to the resident tax officer in equal installments the tax
due on or before the quarterly payment dates that remain
after the filing of the declaration.
(iii) Every taxpayer shall, on or before April 15 of
the succeeding year, make and file with the resident tax
officer a final return showing the amount of net profits
equal to or more than $200 RESULTING IN A TAX LIABILITY
OF $200 OR MORE that was earned or received based on the
method of accounting used by the taxpayer during the
period beginning January 1 of the current year, and
ending December 31 of the current year, the total amount
of tax due on the net profits and the total amount of tax
paid. At the time of filing the final return, the
taxpayer shall pay to the resident tax officer the
balance of tax due or shall make demand for refund or
credit in the case of overpayment. Any taxpayer may, in
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lieu of paying the fourth quarterly installment of the
estimated tax, elect to make and file with the resident
tax officer on or before January 31 of the succeeding
year, the final return.
(iv) The department, in consultation with the
Department of Revenue, shall provide by regulation for
the filing of adjusted declarations of estimated net
profits and for the payments of the estimated tax in
cases where a taxpayer who has filed the declaration
required under this subsection anticipates additional net
profits not previously declared or has overestimated
anticipated net profits.
(v) Every taxpayer who discontinues business prior
to December 31 of the current year, shall, within 30 days
after the discontinuance of business, file a final return
as required under this paragraph and pay the tax due.
* * *
Section 3. This act shall take effect in 60 days.
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